ONE Gas Reports Q1 2026 Financial Results with $128.7 Million Net Income

ONE Gas, Inc. reported its financial results for the first quarter of 2026, revealing a net income of $128.7 million, or $2.04 per diluted share, compared to $119.4 million, or $1.98 per diluted share, in the same period of 2025. Total revenues for the quarter were $831.7 million, a decrease from $935.2 million year-over-year. The decline in revenue was primarily attributed to lower natural gas sales, which fell to $769.9 million from $870.4 million, reflecting a significant drop in the cost of natural gas, which decreased to $393.5 million from $512.5 million. Operating income increased slightly to $189.6 million from $180.5 million, driven by new rate revenues despite lower sales volumes.

The company experienced a notable change in customer metrics, with an increase in the average customer count to approximately 2.3 million, up from 2.305 million in the previous year. This growth was attributed to the connection of approximately 4,800 new customers during the quarter. However, total volumes delivered decreased to 119.0 million cubic feet from 144.6 million cubic feet, influenced by warmer weather conditions that were 24.6% above the previous year, impacting residential and commercial natural gas sales.

In terms of strategic developments, ONE Gas entered into an at-the-market equity distribution agreement in February 2026, allowing for the issuance of up to $225 million in common stock. As of March 31, 2026, the company had $204.4 million of equity available for issuance under this program. Additionally, the company received a $64.3 million federal income tax refund in April 2026, which is expected to bolster its liquidity position. The company also filed for a base rate revenue increase of $28.7 million in Oklahoma, with a hearing scheduled for June 2026.

Operationally, ONE Gas reported a total capital expenditure and asset removal cost of $169.6 million for the quarter, down from $177.7 million in the same period last year. The company continues to focus on maintaining and upgrading its infrastructure to ensure safe and reliable operations. As of March 31, 2026, the company had a total debt-to-capital ratio of 47.1%, remaining compliant with its credit agreement covenants. The company’s long-term debt stood at approximately $2.2 billion, with no maturities due within the next year.

Looking ahead, ONE Gas anticipates continued challenges from fluctuating natural gas prices and weather conditions affecting demand. The company remains committed to its capital investment strategy, with expected full-year capital expenditures of approximately $800 million for 2026. The management's outlook emphasizes the importance of regulatory mechanisms in mitigating earnings lag and ensuring recovery of costs associated with infrastructure investments.